Activision has confirmed that they will close RedOctane as their part to release less Guitar Hero games in 2010. RedOctane is the original Guitar Hero publisher and creator of the franchises plastic instruments. Kotakuhas reported that Red Octane had been completely shut down with those employees responsible directly for the series’ hardware to report straight into Activision. The website estimates that about 30 to 40 people were shown the door. Which is a big number of developers.

Also affected by Activision’s recent crop of cost-cutting measures is Underground Development, an internal studio that has made Guitar Hero: Van Halen and BMX XXX titles, this shows that the company is more interested in the money than dropping popular titles. The company also closed the studio doors of the developers who created Prototype, Radical Entertainment.

Activision staff had this statement, “As part of our overall strategy to release fewer skus for Guitar Hero in 2010 we are closing the Underground studios and relocating RedOctane to our Santa Monica headquarters under the leadership of David Haddad.”

Earlier this month Activision said that David Haddad, chief operating officer of Guitar Hero, will now assume operational responsibilities for the business unit following the departure of President and CEO, Dan Rosensweig.